Lost Note/Deed of Trust/Reconveyance Bond
Overview
California civil code 2941.7 allows property owners to use a surety bond to clear an old, paid-off mortgage lien from a property’s title when the original lender cannot be found. The amount of the bond required is 2x the original note amount.
Cost of Bond
The premium for the bond is 1.5% for the first $100,000, and 1.25% for any amount greater than $100,000. By way of example, the following bond amounts require the premium amounts below:
| Original Note Amount | Bond Amount | Premium (One-Time) |
| $50,000 | $100,000 | $1,500 |
| $100,000 | *$200,000 | $2,750 |
| $500,000 | *$1,000,000 | $12,750 |
*Underwriting Requirements (Documentation Required):
- All bond requests require a preliminary title report, completed and signed application (including indemnity agreement), and an explanation on the history of the note being bonded.
- Bond amounts greater than $150,000 require the principal to qualify with a satisfactory credit history and provide a personal financial statement. Any accounts listed on the personal financial statement greater than $25,000 require accompanying bank statements.
Bond Form Summary:
The California lost note/deed of trust/reconveyance bond protects the title company or lender if the original lost note is found or the beneficiary tires to collect on the debt. The surety bond is needed when a title search shows an open, unreleased mortgage lien that blocks a sale or refinance of a property.
- Principal: Property owner
- Oblige: VERIFY WITH TITLE – usually the oblige is the trustee of the original deed of trust*
- Surety: Insurance company guaranteeing the bond
- Bond Amount: 2x (times) the original note amount
- Bond Term: 3 years (Does not need to be renewed)
*Depending on the age of the lost note, the current title company on your transaction may want to be named as Obligee. Please confirm with your title officer who they want named as Obligee (Either the original trustee or the title company on the subject transaction).
Get Your Lost Note/Deed of Trust/Reconveyance Bond Today
You can get a California lost note and trust deed bond from NNA Surety. Call us at 855-575-1063 or complete our form to get bonded today.